BUSINESS PLAN

JACK’S POULTRY

PRESENTED BY: JACKSON LOSINGILIL LOMILINGA

CENTRE CODE: 578001

INDEX NO: 5780013106

CENTRE NAME: THE ELDORET NATIONAL POLYTECHNIC

COURSE: DIPLOMA IN PROJECT MANAGEMENT

COURSE CODE: 2922/108

SUPERVISOR: ELIZABETH WALIOLI

PRESENTED TO:

THE KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL

FULFILLMENT FOR THE AWARD OF DIPLOMA IN PROJECT
MANAGEMENT

EXAMINATION SERIES: JULY 2022

 DECLARATION
I hereby declare that this project is purely the true copy of my original research work and that
no part of it has been copied from elsewhere. This work is presented to the Kenya national
examination as part of the requirements for the award of Diploma in Project Management.

NAME: JACKSON LOSINGILIL LOMILINGA

SIGNATURE……………………………….....Date……………………

The business plan has been submitted to the Kenya examination council (KNEC) with my
approval as the supervisor

SURPERVISOR: MADAM ELIZABETH WALIOLI

SIGNATURE……………………………….....Date……………………
 DEDICATION
I dedicate this work to my beloved parents, brothers and sisters for their tireless support.
Their great concern love and financial support.
 ACKNOWLEDGEMENT
I express my sincere gratitude to all who contributions to successful of this plan.
Foremost to my tutor who was tireless in making all the effort for the success of this plan.
 TABLE OF CONTENTS

DECLARATION..................................................................................................................i
DEDICATION....................................................................................................................ii
ACKNOWLEDGEMENT..................................................................................................iii
EXECUTIVE SUMMARY………………………………………………………………1
CHAPTER ONE..................................................................................................................1
BUSINESS DESCRIPTION...............................................................................................1
1.0 INTRODUCTION.........................................................................................................1
1.1 Business Name...............................................................................................................1
1.2 Business Location and Address.....................................................................................1
1.3 Form of Ownership........................................................................................................2
1.4 Type of Business............................................................................................................2
1.5 Industry..........................................................................................................................2
1.6 Justification of the Business..........................................................................................2
1.7 Products.........................................................................................................................3
1.8 Goals of the Business.....................................................................................................3
1.9 Entry and Growth Strategies..........................................................................................4
CHAPTER TWO.................................................................................................................5
MARKTING PLAN............................................................................................................5
2.0 Introduction....................................................................................................................5
2.1 Customers......................................................................................................................5
2.2 Market Share..................................................................................................................5
2.3 Competitors....................................................................................................................6
2.3.1 Names of Competitors................................................................................................6
2.3.2 The location of competitors........................................................................................6
2.3.3 The Weakness and Strength of Competitors..............................................................6
2.3.4 Methods of Capitalizing the Weakness......................................................................6
2.3.5 Size of Competitors....................................................................................................7
2.4 Methods of Promotion and Strategies............................................................................7
2.5 The pricing strategies.....................................................................................................8
2.6 Sales Tactics..................................................................................................................8
2.7 Distribution Strategy......................................................................................................9
CHAPTER THREE...........................................................................................................10
ORGANIZATION PLAN.................................................................................................10
3.1 Introduction..................................................................................................................10
3.2 Organization Structure.................................................................................................10
3.3 key management personnel..........................................................................................11
3.3.1 The director...............................................................................................................11
3.3.2 General Manager......................................................................................................12
3.3.3 Marketing manager...................................................................................................12
3.3.4 Accountant................................................................................................................12
3.3.5 Cashiers.....................................................................................................................13
3.3.6 Cyclists.....................................................................................................................13
3.3.7 Drivers......................................................................................................................13
3.3.8 Sellers and cleaners...................................................................................................13
3.4 Other personnel............................................................................................................14
3.4.1 Workers.....................................................................................................................14
3.4.2 Watchman.................................................................................................................14
3.4.3 Medical personnel.....................................................................................................14
3.5.1 Recruitments.............................................................................................................15
3.5.2 Training.....................................................................................................................15
3.5.3 Promotion of personnel.............................................................................................16
3.6 Renumeration and incentives for personnel................................................................16
3.6.1 Payments of staffs.....................................................................................................17
3.6.2 Allowances...............................................................................................................17
3.6.4 Incentives..................................................................................................................17
3.6.5 Commissions.............................................................................................................17
THE TABLE REPRESENTING SALARIES...................................................................18
3.7 Licenses permits and by laws......................................................................................18
3.8 Other support services.................................................................................................19
CHAPTER FOUR.............................................................................................................20
4.0 OPERATIONAL PRODUCTION PALN...................................................................20
4.1 Introduction..................................................................................................................20
4.2 Production facilities and capacity................................................................................20
4.4 Production process.......................................................................................................21
4.5 Regulations affecting operation...................................................................................22
4.6 Operation process........................................................................................................22
4.7 Preventives and maintenance plan...............................................................................22
4.8 Regulations affecting operation...................................................................................23
CHAPTER FIVE...............................................................................................................24
FINANCIAL PLAN..........................................................................................................24
5.1 PRE OPERATION COSTS.........................................................................................24
5.2 Working Capital Estimate............................................................................................24
5.3 Pro Forma Income Statement......................................................................................29
5.4 Proforma Balance Sheet..............................................................................................29
Breakeven point.................................................................................................................31
EXECUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION
The business will be registered and operated under the name Jack’s Poultry. The main
concern of the intended business will mainly be the sale of hens, chicks, eggs etc. to the
residents at their own area. The business will be located in Kisumu-Bondo road opposite
Kisumu airport
It will be a self-sponsored business where the capital will be the contribution from the
owners. The capital intended for the business will be 150000 which the owners will
contribute. The contribution from the family members will be used as a startup cost of
the business.
2.0 MARKETING PLAN
This chapter highlights the identification of the potential customers of the Business. It
also highlights the strengths and weaknesses of the competitors and their identification.
3.0 ORGANIZATION PLAN
The organization chart in this chapter shows different personnel and their level of
participation in the management of the business. It also highlights the qualification of
each employee being absorbed also the methods of recruitment, interviewing and
promotion.
4.0 OPERATIONAL PLAN
This chapter highlights on the means of which the business will obtain the required
production facilities for effectiveness and convenience of running the business.
5.0 FINANCIAL PLAN
This chapter highlights the financial requirements of the intended business for instance
the pre-operational costs, the working capital, proposed capitalization and also the
necessary calculations i.e. the balance sheet for the business.
 CHAPTER ONE

BUSINESS DESCRIPTION

1.0 INTRODUCTION
This chapter consists of the business name, and sponsorship. The location and address of
the business, the products of the business, the justification of the opportunity the growth
and strategies and the goals of the business.

1.1 Business Name

The business name will be Jack’s poultry the name will be obtained from the
abbreviations of the name of the business owner’.
It will be a self-sponsored business where the capital will be the contribution from the
owners.
The capital intended for the business will be 150000 which the owners will contribute.
The contribution from the family members will be used as a startup cost of the business.

1.2 Business Location and Address

The business will be located in Kisumu-Bondo road opposite Kisumu airport

KISUMU COUNTY
HOTEL

KISUMU

JACK POULTRY KISUMU

FARM AIRPORT

JARAMOGI
KISUMU BOYS REFFERAL
BONDO HOSPITAL
HIGH
ROAD
1.3 Form of Ownership
The business will be a sole proprietorship form and the owner decided this kind of
business due to the fact that it’s simple to start and it requires less labor unlike other
forms of business which requires high labour and needs a lot of capital for one to start the
business.

1.4 Type of Business

The business will be a product type of business. It will be supplying chickens and eggs in
the town. To various big hotels. This will ensures that the people in need of chicken and
even those big hotels will get access to them in the simplest way possible.

The business will also provide eggs which will be used by various bakeries in bread
making like bakeries eggs required in various restaurants within the town and outside will
be provided e.g. the Pluto’s Restaurant which is located 9km away from the town at
Kisumu-Eldoret highway.

1.5 Industry
The size of the business will be small size it’s a start up business but it will be growing
in due cease as it get established in the market it will be growing in terms of products
and hoping to open other branches even in other town like Eldoret town Nakuru etc.
because the products are required in various areas.

As the business will have both the layers and broilers it will expand rapidly to a greater
extend. The people to be employed will be around 40 for 20 to be in the side of broilers
and other remaining to be at the side of the layers.

1.6 Justification of the Business

The main factors that makes this business viable in that area is due to the fact that there
are big hotels and restaurant within and outside of the town.
There are also various estates which has the large population of people from various parts
of the country where some of them like chicken meat (broilers) e.g. luhya people.
Among the hotels there are also restaurants like down town, Pluto’s restaurant etc.

1.7 Products
The business will provide eggs from the layers and meat from the business. The products
will be of high quality and customers will get them in the cost convenient way and at the
lowest prices for them.

As the business will provide eggs which as a protein consistent in food, the people will
benefit from it because others food containing protein like beef meat ids expensive eggs
may be used as an alternative. Source and this reduce the expensive cost which one
would have used in buying meat therefore people may get balance diet by the simplest
way.

1.8 Goals of the Business

The main goal of the business will be to provide the highest quality products need by the
customers and expects to achieve. The highest profits within the shortest time possible. It
will hope to provide this product at the right time and short term goals is to get customers
satisfaction. The long term goals are to open up some other business in other towns to
provide its products to various companies and even big organizations.

The Jack’s poultry will also have other to achieve at a long period of running the business
The major goals prosperity is;
 Uplifting the living standards of the people by creating jobs to the jobless.
 Enlarge the business country wide by ensuring the products it offers are of quality
standards.
 Offer customer efficiency care and providing conducive working environment to
the work personnel.
  Making an effort of expanding he business by maximizing the profit it obtains at
the right way required.
 Creating co-operative in the business and increasing salary and wages for the
employees yearly depending on their hardworking to have more interest.

1.9 Entry and Growth Strategies

The business will use the weakness of other competitors. This is by making sure that the
products that offer are of high quality and the process should be according to the seasons
and consider various times of the year. The weakness of other should be the strength and
try to provide better products from those of competitors this will enable it to remain in the
market for a long period of time despite challenge which will be encountering

In initial case it will be a sole proprietorship enterprise however the focus will actually be
on a rapid expansion which aims at employing more and more staffs hence becoming a
partner of the main production area for providing eggs and chickens.

The profit guarantee is higher as sales increases. The challenge will be difficulties in
familiarizing with new people as the market starts but effectiveness should be by using
appropriate promotion methods this is to ensure that the largest group of customers is not
creating awareness of the products provided in the area and their quality but not quantity.
i. To ensure that the largest group of customers are not the market prices should be
far not expensive compared to that of the competitors after sale services and also
be provided to customers.
ii. The employers and also be careful and courteous to customers and the profit
released and be used to expand the business by increasing and ensuring that the
stock and chicks of both broilers and layers are of the quality required by
customers.
 CHAPTER TWO

MARKTING PLAN

2.0 Introduction
It shows how the business intends to sell its products and how to handle its customers in
the right way. It includes the customers, competitors, market share various methods it
will use and advertising strategies.

2.1 Customers
The intended business is going to supply its products to various hotels and restaurants.
The targeted customers include the big restaurants like Pluto’s which is 5km from the
town. Other big hotels like Eldoret tea and other will also be supplied with those
products, various hospitals schools and estates will also benefit from these products.

2.2 Market Share

The total market potential will be controlled by making sure that products always
supplied are of the highest quality and that there should be no shortage in the firm.
The appropriate target population size or the area will be about 40000 people this is
because the town and the estates within the town have high population this population is
about 400 km per share.

The market share controlled by the competitors in general is 600 km with less than 20000
populations though the competitors will be many they are sparely populated and due to
their weakness obtained from their customers.
Competitors Location Population
Kuku choma 200km 2000
Oreru 300 km 4000
Yes 150 km 1800
Obama 100 km 1000

2.3 Competitors
They include the potential competitors of the business their location.

2.3.1 Names of Competitors

Various businesses include the kuku Choma Orenu Poultry, Jess Poultry Obama

2.3.2 The location of competitors

Oreru poultry is located opposite the Jack’s poultry. This is next to the sunshine hotel
opposite Eldoret district hospital50mm away.
Jess poultry is next to the green station 20m away

2.3.3 The Weakness and Strength of Competitors

Since the competitors do not offer their goods on credit terms the business will grow
rapidly and have more customers. The competitors also do not give chance for bargaining
as the give their products at fixed prices.

The qualities of their products are also less there hope the business will make also of
profit having more customers in the town and other areas.
2.3.4 Methods of Capitalizing the Weakness
Competitors shall be capitalized by giving discounts on the goods sold, selling good on
credit terms to attract customers. The business will also work 27/7 this is to make sure
that the customers will be in a position to get their products each and every time they
need.

2.3.5 Size of Competitors

Though the competitors are new at medium size. The business hope to grow faster to a
large size because the weakness of these others has already been identified and by
correcting their mistakes the business will overtake them as the time goes by.

2.4 Methods of Promotion and Strategies

Because of business needs to be known to various areas different methods will be made
its popular.

The roads shows will be made once in every three months to inform the people of the
business products, the cost used in advertising should also be of minimum this is to
ensure that the money used to be placed at most each side of the town and even the
neighboring centers and towns.

Newspapers re also going to be used for the people who usually love to read newspapers
are visit town they will get inform of our products through the radios because the
television and radios are also going to be used in advertising our products.

To overcome challenges during advertising the most suitable methods should be chosen
and the specific times of advertising should be identified in special times where almost all
people get the message.

In advertising pictures which are attractive are also going to be used which easily ensure
the alternatives of the people for the information.
The promotion methods will depend on the products that company or customer gets they
will include transportation and sometimes giving extra goods. To make them attracted in
buying their products in the business.

2.5 The pricing strategies

This includes the methods considered when pricing the products

The products pricing will depend on the quality of products i.e. eggs, and the weight of
broilers and layers. Their prices will also depend on the seasons of the year. The credit
terms will be not more than 3 months for the eggs. The discount to be allowed depends
with the initial prices to the customers provided that the profit will be obtained but not
that products are sold without making any profit.

The selling price should be higher than buying price but lower than that of competitors
this is to attract customers.

The after sale service will be the transportation of products to the point of customers.
Various supplies will be employed this will make it easy for the provision of customers
with the produce they require without any problem or delays.

2.6 Sales Tactics

Various methods of selling will be used for that the supplies are employed business vans
will be used to supply customers.

The supplying will be as soon as the customers need the products or even on daily basis
to their site this will enable them to do their work and get their products for selling to be
efficient people are employed to transport goods to various areas because when few
people are employed a some of the customers may not be in position to get products at
their point of need due to the fact that sales men may have transported products to a
different area where they may not reach at that time.

2.7 Distribution Strategy

Various channels of distribution will be used i.e. products supplied to the wholesalers.
Wholesalers to retailers until the products reach customers at lower level.

The products may also be distributed to various shops in remote areas to make sure that
the people at rural areas get the products these are people who are not in position to buy
this products in large quantities.

Due to the fact of challenges faced during distribution and insecurity in some areas the
distribution will be made at the midday when people are busy with their work and the
security personnel i.e. police men should be employed for the security on the process of
transporting goods/products in areas of insecurity.
 CHAPTER THREE

ORGANIZATION PLAN

3.1 Introduction
This section explains how the business will be co-ordinate and how all the function of the
organization will be managed. This is to make sure that the goals and the objectives by
the owners are achieved at the required time and the goals are achieved. It will also
ensure the smooth running of the business.
The example has various components which include;

 Organization structure
 Key management personnel of the business
 Other management personnel
 Recruitment and training promotion given to the workers
 Various remuneration and incentive that are given to the personnel after attaining
a certain interest at a given period of time.
 Licenses permits and by laws.
 Other support services provided.

3.2 Organization Structure

This business will be under the director who is responsible of all the activities in the firm.
There will be general manager marketing manager accountant cashier and other
subordinates personnel like the drives motorists and sealers who will be responsible in
selling of the products to various areas.
 Director

General manager
Marketing manager

Accountant

Cashier

Drivers Cyclist Sellers Cleaners

Other subordinates

3.3 key management personnel

These include the management team that influences the operation of the business.

3.3.1 The director

He controls the all business firm making sure that all the work is done to the efficiency
and working conditions for the business is conducive.

He also makes sure that all the required materials are for the efficiency of the business
He should be a qualified person with all the managerial skills which include conceptual
skills technical skills interpersonal skills to cope with various situations that a manager
must have for the efficiency of his/her work
He should also have some techniques for selling.

3.3.2 General Manager

He is responsible for the employed personnel in the business and the staff.
He should have qualities of the manager which includes the moral, physical and mental
which allows the manager to deal appropriately with the other people in the organization.
-The general manager should be in a position to identify various problems and forward
than to the directors in case of anything not good
-He should be in a position to use his own judgments because he is the one with the
workers most of the time.

3.3.3 Marketing manager

 He must be a Kenyan citizen

 He should be in charge of marketing business products
 He should quality in business and marketing techniques
 He should have a long time working experience and have the skills in the duty
he/she performs.
 Must have a certificate of good conduct
 Must be physically fit and have mental qualities to assist him/her in the various
fields he has to attend.

3.3.4 Accountant

 He should be in charge of finances i.e. budgeting and calculating expenses used in

the business and recording according to what it has been bought in fact of the
poultry.
 Be a certified person in accounting to allow him/her to work properly without any
problem.
 He should have a working experience for at least 6 months.
3.3.5 Cashiers

 Responsible for cash received from sales of various products i.e. eggs and
chickens.
 Should be qualified person in sales and marketing.
 Experience of at least 11 year and above.

3.3.6 Cyclists

 Responsible for transportation to the nearest customers within the town.

 They should published the advertisement concerning business by using
motorbike.
 He should have good moral qualities to talk to the people and good behavior to
deal with customers within the town.
 He should be a forth form and above in schooling.

3.3.7 Drivers

 They should be responsible in transporting the goods and products to the

customer’s premises i.e. to the restaurants which are far away from the town i.e.
Pluto’s restaurant.
 He should have a certified driving license.
 Should have good communication skills.

3.3.8 Sellers and cleaners.

 They should clean the entire business premise ensuring that the place ids clean.
 Cleaning helps to reduce the susceptibility of disease infections in poultry and
make the area to be of worth required by the chickens.
 The sellers will also attend the customers need when required
 They should be literate and should communicate well.
3.4 Other personnel

3.4.1 Workers

 They may include the workers who attend the various sessions of the poultry and
providing food and water for drinking
 They ensure that the foods provided are of food quality and containing all
nutrients required.
 They ensure that the rate chickens and diagnosed regularly to minimize that the
rate of disease infection and also ensure that the place is clean.
 They make sure that the young ones are protected.
 They should be clean and ensure that they become friendly with the chickens.

3.4.2 Watchman

 Ensure that the place is well guarded from domestic animals and other people
who might cause harm to the firm.
 They should be qualified from the security groups.
 They should be responsible person/ people who are of the firm.
 They should have a working experience of at least 1 year.
 They should have good morals to other people.
 He should be a person who loves his work and already to promote it by doing
what is required of him to do at the right time.
 He will ensure that high security is maintained at the work place

3.4.3 Medical personnel

They include the vertinary people who should be attending to the poultry at regular
moments this is to ensure that all the diagnosis concerning the firm is made.
This people will be providing medical services to the firm and investigating on all
showing the signs of disease infection to the chickens.
-They should also measure the contents of the feed used in the animal feed.
-The following be met by the med personnel
 Qualified person in the field
 They should be in position to use their judgment in various conditions.
 Provide the required standards of the firm.
 They should have a working experience of at least 2 years in the field of work.
 3.5 recruitments training and promotion of personnel

3.5.1 Recruitments
This will be done directly the trained and qualified persons from the various institution
offering the training concerning the poultry management/ poultry keeping.
The application will be invited from the qualified interested personifies who seeks the job
who later are invited for the interview.
-The interview will be conductors by the manager and other invited professional from
sides there after the interested and qualified persons will be chosen.
-The chosen people will have to be presentable hence they should be in a position to
display a good Public Relation (PR) hence able to stay and communication with
customers well. For the efficiency of work the people age 22 and above will be chosen
for quick and perfect work.

3.5.2 Training
Training will be practical in order to achieve best performance tries will be organized for
them so that they got expose in the field.
The training concerning various provisions should be given regularly this is due to the
industrial growth and ongoing change which are brought by the technology.
 The employees are also given time to advance their studies.
 Other skills will also require of themselves to be well equipped with various
knowledge which involve;
 Customer’s employee’s relationship will is of great importance in the
business.
  They should use their own judgment to know the likes and dislikes of the
customers.
 They should be in position to have good business environment and know
how to improve it write time
Business discipline and behavior should also checked and make sure that its maintained
to the required level.

3.5.3 Promotion of personnel

Since its beginning of the business no assurance of profit because this is the time
customers tend to test our services the promotion will depend on the training of the
personnel etc.
Due to business turnover which mean good income and profit of which employees will
benefit from in terms of salary adjustments?
Good and high profit will mean good income and profits of which employees will benefit
from in terms of adjustments and its. These staff that will be in charge to oversees and
advice on establishment of new branches.
-As the business grow the methods of promotion charges and the workers will be
promoted according to the period of experience/working experience in the firm.
The employees will also be promoted according to their performance and the way they
look to be loving their work having ability to perceived in various situations which may
come on their way.
 The qualifications of the people in various positions will also be used in
promoting the personnel’s in the working place.
The qualification of the persons at the level of their work and working experiences they
should provide during the interviews period will ensure that the right personnel of certain
position are chosen and their experience will ensure that they have a great potential at
their work and are able to work to the required standards.
3.6 Remuneration and incentives for personnel
The personnel will be paid according to their duties and responsibilities in the business
for example the payments will not be the same for the manager and a cleaner.

3.6.1 Payments of staffs

It should be done to their position and roles that they play in the firm and the risks
involved in the position of work.

3.6.2 Allowances
Allowance should be given according to their ages and work risks i.e. people allowance
not the same with that of unmarried people.

3.6.3 Benefits
Payments are given according to the person involvement in the growth strategy or the
way the person has assisted in the benefits that the firm has gained due to his working
potential by ensuring that the products and goods are of the highest quality or by ensuring
that the products gets the best market for sell.

3.6.4 Incentives
Incentives will be given to workers in line with their efforts and trustworthiness in the
firms.

3.6.5 Commissions
During the holidays the business will be on going /opened and those who are ready or
will be on duty during these days will be given commission on their salaries.

These programs will improve and ensure the best performance and enables the workers to
work harder as all this will contribute to the great input than the output.
Seminars conducted will also have allowances for those who will be attending.
Remuneration and the incentives to work personnel will enable the personnel to work to
their level best knowing than these will be good salary a head of their work and in every
good they do this will enable the ensure the smooth running of the business leading to its
rapid growth in 5the market providing the good without shortage after each and every
person taking care of the job that is in his position ensuring that he does what is required
of him to 20.

THE TABLE REPRESENTING SALARIES

Personnel Working salary Allowance Total

Director 8000 4000 12000
General manager 7000 3000 10000
Marking manager 6500 1500 8000
Accountant 6500 1500 8000
Cashier 5000 2000 7000
Drivers 4000 2000 7000
Cyclist 3000 2000 5000
Medical 5000 3000 8000
representative
Sellers and cleaners 2000 1500 3500
Firm attendance 4000 2000 6000
Total 76500

3.7 Licenses permits and by laws

JACK’s poultry will be registered under the trade act of Kenya like other business which
will provide a trade act permit and it should be given license to work in the field and
permits the business to exist in the field.
The business will also keep the rules and regulations about the by-laws of the country it
should not corrupt in any way it should provide the goods and products which the laws
requires of it to provide.

The license should also be obtained regularly i.e. after every year to keep off from going
apparel with local authority.

The business will also contribute the feel which is required by the authority for the
existence off the business in the field which is normally paid to the local authority which
acts as the tax for the company.

3.8 Other support services

The other support services will be provided by or support services of the firm will be by
savings at the Kenya commercial bank other consultancy services will also be provided
by the other co-operation which is well known.

-The workers/ employees will also be advised to open their accounts there money at a
save area where they are sure of the security of their money.

-The firm should also be ensured against a number of risks like the theft fire and even
other accidents for the drivers and transport systems used by the firm.

-Electric alarms and fire extinguishers should be installed in the firm this will enable or
assist to prevent army danger which might arise in the poultry region.

-The communication facilities should be provided to facilities easy communication on

various work places and even for easier communication in case of any requirements
needed by the customers facilities like telephone times will be linked and people
/customers should be informed so that they just call in case they require or want to injure
something from the business. This communication will facilitate effective working
business.
 CHAPTER FOUR

4.0 OPERATIONAL PRODUCTION PALN

4.1 Introduction
This chapter describes the products of the business and all the production plans. It
includes all the facilities needed and the capacity required of the business production
strategy production process regulations affecting the operation of the business.

4.2 Production facilities and capacity

This includes the various tools and the facilities which required for the efficient working
of the business.

Various items are required which include;

Item Equipment/ Quantity Prices of Total
facility required equipment’s
1 Air conditioner 2 2500 5000
2 Incubator 2 25000 50000
3 Motor bike 2 10000 20000
4 Vehicle 1 35000 35000
5 Computer 1 29000 29000
6 Public 1 5500 5500
telephone
7 Benches 5 600 3000
8 Food hopper 10 2000 2000
9 Basins 10 2000 2000
Total 412500
Some facilities undergoes services e.g. air conditioner, motor bike incubator etc. should
be services regularly after every 6 months and for the computer it should depend on the
virus infection.
The business will look forward for adopting more facilities as the business continues to
grow.

The business promise will start by renting the building which will cost four thousand
shillings at the first place and experienced personnel. Personnel will continue learning n
various skills used in the firm as they experience as they stay in the work. And various
trips on training programs should be done to allow them gain various skills on their work.
This will enable them to know their weakness and the source of their strengths able to
penetrate in the market as compared to their competitors.

4.4 Production process

The various feeds and equipment’s should be provided for the easy production of the
business.
The regular checking the products should be checked this is to ensure that in each and
every time the products of the business are required they should be available.
The steps involve the supply of products from the business to the wholesalers and even
direct to the point of consumption.
The selling of products will also be direct from the firm to the customers who buy them
in large quantities.

The business may acts as wholesalers.

Various challenges should be overcome by ensuring that the requirements like feeds are
provided and medical services are provided to ensure effective working.
Challenges are also overcome by making sure that in every department there should be a
responsible person who regularly checks the working conditions and the work done at
everyone should be assessed.

4.5 Regulations affecting operation

In every business organization there are risks and regulations that are needed to be
followed for the smooth running of the organization. This rules and regulations are vital
for smooth running business firm there will be rules and regulations that will guide both
the staff and the customers to avoid the customers to avoid conflicts in the business.
These rules include the opening hours/working hours of the firm the weekends should the
commission to be given.
The discipline should be taken in any case arrivals and environment should be
appropriate and with conducive environment for every person and even for the poultry
for their best result output. Before starting the business it should be approved by
professional for it to be good before starting this business this will ensure that all the
necessary the necessary requirements are available for both the personnel and good
housekeeping for the poultry.

4.6 Operation process

The business operating hours starts from eight thirty 8:30 am to 7:00 pm from Monday to
Saturday.
It may also be operating when required of but this hours applies to the selling personnel
only but other departments like feeding are regularly through, med personnel will be
attending to the firm weekly (after every one week to assess the condition of the firm.

4.7 Preventives and maintenance plan

The management will ensure that the facilities and equipments are serviced are regularly
checked and maintained for high level of production.
-The employees are then trained regularly due to the changing technologies in the various
firms.
-The place will also be regularly cleaned to reduce the chances of disease infection.
-Using interviewers/questionnaires the customers should be questioned concerning the
products and using them to know the comparison between the products and quality of the
business with those of the competitors

4.8 Regulations affecting operation

The business will require documents from the local authority to ensure the smooth of the
business. The license will be obtained at the rate of 2000/=. This license will required to
be change or renewed after everyone year.
The other details will be the presidential portrait this is also obtained at a fee which will
decorate the wall at in the reception session.

The area of the poultry will be allowed to be known by every person even the pass payers
it should be silent and the persons visiting the place should be people when with high
integrity in the field knowing the importance of the field/firm.
 CHAPTER FIVE

FINANCIAL PLAN

5.1 PRE OPERATION COSTS

JACKS POULTRY PRE-OPERATIONAL COSTS AS ATR 1st January 2021
Item Amounts
Rent deposit 6000
Installation cost 500
Electricity cost 500
License 1200
Permit 800
Total 9000

5.2 Working Capital Estimate

WC=CA-CL
JACKS POULTRY
WORKING CAPITAL START 31ST DEC 2022
Expenses Year 1 Year 2 Year 3
Current assets
Stock 400000 490000 550000
Debtors 550000 550000 550000
Cash at bank 200000 250000 400000
Cash at hand 90000 78000 100000
Total 1190000 136800 1600000
Current liabilities
Creditors 120500 200000 260000
Bank loan 87000 80000 85000
Total 207500 280000 345000
Working capital= current assets – current liabilities
Year 1 =119000-207,500
=982500
Working capital for 2nd year=currents assets -current liabilities

-= CA-CL
=1368000-280000
=1088000
Working capital 3rd year= current assets- current liabilities
=CA-CL
1600000-345000
=1255000
Total working capital =working capital year one + wc year 2 + wc year 3
1st year 982500
2nd year 1088000
3rd year 1255000
TOTAL WC=kshs. 3325500

Long term liabilities

Computer 2000
Motor bike 10000
Vehicles 10000
Incubator 35000
Air conditioner 5000
Total 395000
CUMMULATIVE CASH FLOW FOR YEAR ENDED 2021
Month Jan Feb March April May June July Aug Sept Oct Nov Dec
Inflow b/f
Sales 358180 355360 354740 35072 355940 377340 37134 351460 306340 273920 28785
Debtors 2000 30000 41000 38000 0 40000 35000 0 40000 10400 21000 2 401900
Cash at hand 37000 3000 1800 45000 16000 300 6000 45000 14100
Total 0 1100 23000 5000 1000 30000 7200 36000 507300
40200 399180 399460 394540 5000 418940 417840 10000 421460 324920 336920 20000 923300
0 40072 39834 35285
0 0 2

Outflow
Creditors 25000 2000 2000 700 3700 2200 1000 11600
Purchase 2000 30000 31000 32000 33000 30000 34000 35000 33300 35000 35250 33300 386850
Rent 120 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000
Electricity 120 120 120 120 100 120 130 120 120 120 120 1410
Wage/salaries 9500 9500 9500 9500 9500 9500 9500 9500 9500 9500 9500 9500 114000
Repair 100 250 150 500
Insurance 5000
Permit 800
License 1200
Advert 200
Total 43820 43820 44720 43820 44780 41600 46500 46880 45120 50320 49068 46270 546718
Net cash 35818 355360 354740 350720 35594 377840 371340 35146 306340 273920 287852 30658 306582
flow 0 0 0 2

COMMUTATIVE CASH FLOW FOR THE YEAR ENDED IN 2022

Month Jan Feb March April May June July Aug Sept Oct Nov Dec
Inflow b/f 306582 309582 30688 306477 305852 310957 306182 305362 307247 306117 304397 35929
2 7
Sales 47100 4500 47500 4800 49000 40000 35000 38000 45000
Debtors 500 100 30000 400 35200 3000 5000 50559
Cash at hand 2500 1200 800 9000 10000 12000 7200 54000 0
Total 356682 354682 16000 353977 358652 355157 355182 358362 354247 356317 403397 13800
33908 11405
2
 0
99273
7
Outflow
Creditors 5400 2100 5200 1300 2000 1600
Purchase 22000 35000 3300 35600 30000 36000 37300 37500 35450 37400 36000 41120
Rent 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 2100 0
Electricity 120 100 105 125 95 110 125 115 115 100 100 25200
Wage/salaries 10100 10100 10100 10100 10100 10100 10100 10100 10100 10000 10100 1325
Repair 200 300 12120
Insurance 5000 0
Permit 1000 500
License 1200 5000
Advert 180 200 200 200 180 200 200 200 180 1000
1200
1940

Total 47100 47800 47605 48125 47695 48490 48825 49820 51115 48130 51920 48100 584715
Net cash 309582 306882 30647 305852 310957 306667 305362 307247 306117 304397 355097 40379
flow 7 5

CUMULATIVE CASH FLOW FOR THE YEAR ENDED 2023

Month Jan Feb March April May June July Aug Sept Oct Nov Dec
Inflow b/f 30505 308337 303987 304487 30741 309047 309927 31082 02977 301657 299737 30242 302197
Sales 7 47000 40000 5200 7 4500 500000 7 40000 50000 52000 2 529900
Debtors 50000 5500 20000 38900 1000 45000 20100
Cash at hand 100 6000 1500 7000 2000 10000 10000 2500 500 2000 7100
Total 3400 355337 355487 356487 31000 361927 361927 3700 353977 354157 352237 5000 933297
35855 35991 36192 35442
7 7 7 2

Outflow
Creditors 1550 5000 250 3000 4500 2400 16700
Purchase 30000 37000 33200 38000 38000 38300 35300 34000 39500 39200 37400 39400 439300
Rent 2200 2200 2200 2200 2200 22000 2200 2200 2200 2200 2200 2200 26400
Electricity 120 100 100 120 120 120 100 100 120 120 105 125 1360
Wage/salaries 10300 10300 10300 10300 10300 10300 10300 10300 10300 10300 10300 10300 123600
Repair 250 350 600
Insurance 5200 5200
Permit 1000 1000
License 1200 1200
Advert 200 200 200 200 200 200 200 200 200 200 2000

Total 50222 51350 51000 49070 50870 51120 51100 51450 52320 54420 49815 52225 614960
0
Net cash 30833 303987 304487 307417 30904 309927 310827 30297 301657 299737 302422 30219 308337
flow 7 7 7 7
5.3 Pro Forma Income Statement

Item Year 1 Year 2 Year 3

Income 202450 505590 534900
Less cost of sale 30150 411090 434540
Opening stock- 172300 94500 103360
closing stock
Expenses
Rent 24000 25200 26400
Electricity 1410 1325 1360
Advertisement 1360 1940 2000
Repair 500 650 600
Total expenses 27270 9115 30360
Profit before tax 145030 65385 73000
Tax provision 10% 14503
Net profit after sale 14503 29115 7300

5.4 Performa Balance Sheet

JACK’S POULTRY BALANBCE SHEET AS AT 31ST DEC 2021
Assets Liabilities
Current assets Long-term liabilities
Cash at hand 150000 Bank loan 126000
Cash at bank 486600 Capital 270000
Debtors 141100
Stock c.a 40000
1177700 Total 396600
Fixed assets
Machinery 40000 Creditors 11600
Furniture 10000 Capital 830000
Accumulation 10500
depreciation
 60500

Total fixed assets 1238200 1238200

JACK’S POULTRY BALANCE SHEET AS AT 31ST DECT 2022 YEAR 2

Assets Liabilities
Current assets Long-term liabilities
Cash at bank 700000 Bank loan 100000
Cash at hand 65450 Capital 104250
Debtors 13800
Stock c.a 400000
1179250
Fixed assets Creditors 916000
Machinery 42000
Furniture 9000
Accumulation 10000
depreciation
Total fa 61000
Total fixed assets 1240250 1240250

JACK’S POULTRY AS AT 31ST DEC 2023 YEAR 3

Assets Liabilities
Current assets Long-term liabilities
Cash at bank 850000 Bank loan 1100000
Cash at hand 20000 Capital 50000
Debtors 50720
Stock C.A 300000
1220720
Fixed assets Shorter term 10220
Machinery 15500 liabilities
Furniture 16500 Creditors 16700
Accumulation 30000
depreciation
Total 61500
Total fixed asset 1282220 1282220

Breakeven point

Variable costs Year 1 Year 2 Year 3

Electricity 1410 1325 1360
Licenses 1200 1100 1000
Advertisement 1360 1940 2000
Repair 500 600 600
Permits 800 1000 1000
Total 5270 6025 6160
Insurance 5000 5000 5200
Wages/salaries 114000 121200 123600
Rent 2400 25200 26400
Total 45670 157425 161360

Breakeven point =fixed cost/contribution margin percentage

Contribution margin =sales –total variable

1et year (401900-45670)/401900*100

=88.6364% 88.6%

2nd year (505590-157425)/505590*100

=68.7%

3rd year (529900-161360)/529900*100

=69.5% 70%
5.6 Profitability Ratio
Gross profit margin = gross profit/sales *100
17230/202450*100
=85.1%
Net profit margin =net profit/sales*100
40545/202450*100
20%
Return on capital employed=net profit/capital employed*100
40545/270000*100
15%
Rate of return on total assets=net profit/total assets*100
40545/1238200*100
33%

Total contribution margin =total sales- total variable

=sales for 1st year + 2nd year +3rd year –total variable its year ++2nd year+3rd year

=1242940-447600
=795340

Contribution sales ratio

= (contribution margin/sales) = (total sales –variable/total sales)

Contribution margin= (12421940-447600)/1242940*100

64%

B.E.P
Fixed Cost= Salaries And Wages +Rent+ License +Permits+Insurance
=11400+24000+12000+800+5000
=42400
B.E.P=fixed costs/contribution margin
53400/645= 834.375
834.375